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US stocks rise | Canindia News

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US stocks rise

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CanIndia New Wire Service 0 comments

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New York, Sep 26 (IANS) US stocks strongly rebounded on Friday, as investors digested US Federal Chair Janet Yellen’s speech and the second revision for second-quarter US GDP data.

The Dow Jones Industrial Average gained 195.06 points, or 1.20 percent, to 16,396.38, Xinhua reported.

The S&P 500 rose 15.07 points, or 0.78 percent, to 1,947.31. The Nasdaq Composite Index was up 18.79 points, or 0.40 percent, to 4,753.27.

In Thursday’s speech after the closing bell at the University of Massachusetts, Yellen said that she anticipated a rate hike in the coming months, easing concerns about slowing global growth.

“Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter,” said Yellen.

“She sounded sort of hawkish,” said Stephen Guilfoyle, managing director at Deep Value on Friday.

On the economic front, real gross domestic product (GDP) increased at an annual rate of 3.9 percent in the second quarter of 2015, according to the “third” estimate released by the US Commerce Department on Friday.

The revised-up GDP data was mainly boosted by stronger consumer spending and construction.

Meanwhile, the final reading of Thomson Reuters/ University of Michigan’s consumer sentiment index came in at 87.2 for September, advanced from an 85.7 reading earlier this month.

US stocks declined for the third straight session on Thursday, as investors digested a batch of mixed economic reports ahead of US Federal Reserve Chair Janet Yellen’s speech.

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